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Rental/Investment Property

Purchasing a rental property requires a higher Downpayment than purchasing a home for yourself. The minimum down payment for a rental property is 20%. In recent times we have seen lenders getting more and more conservative when it comes to qualifying clients on purchasing a rental property. They believe that a mortgage on a rental property poses a higher degree of risk, they believe if people should get into trouble they will try and keep their owner occupied home as opposed to their rental property. For this reason, the interest rate on a rental property is higher than their owner occupied home. There are so many different programs for rental properties typically we need to take an application to be able to review your individual situation. We see very stringent qualifying criteria, with lower rates, to lenders who offer more lenient guidelines however the rates are higher and at times there could be extra fees in the form of a lender fee to compensate them for the additional risk.